Transcripts For CNBC Mad Money 20240713

Anticipate what will work in that time frame and what wont but after another shocking day, particularly for the sell in may and go away crowd, where the recovery stocks roared, the dow gaining 533 points, nasdaq advancing 7. 7 , the market does not lend itself to that easy divining right now the future is too binary the market feels much more like a horse race where there can be only one winner in a very crowded field of contenders. But its a long race and were still far from the homestretch so it could go either way. Who is running in this race . The first group is the subset of the cramer covid index the storks that enable the stayathome economy think everything from zoom, video, papa johns, dominos. Papa johns 33 sales, thats good news for that horse second group, the recessionproof stocks, mainly the food and consumer Package Goods plays especially ones that make hygiene supplies. During the lockdown, worries about covid, hey, but covid may be waning, lockdown is ending. Third, you have the industrials. They manufacture everything from chemicals to paper boxes to steel to airplanes they went to scratch for weeks and now theyre back on track. How about the 737max. They restarted that lineup at boeing fourth theres the beaten down nag the cohort including the airlines, all things tourism many thought these needed to be put down because of the pandemic turns out theyre not even lame. Fifth horse the drug stocks. Especially the ones work on a cure or vaccine for covid19 theyre lathered, theyre ready. Sixth, retail, restaurants maiden claimers. 7th is tech. The cyber securities theyre stalwarts. The 8th horse, home improvement. Didnt know it would make it into this derby. 9th, the financials, especially the banks. Didnt know they could still run until yesterday. And again today, i thought they had pulled up lame finally theres 10th, theres fang facebook, amazon, apple, netflix, alphabet. High Tech Companies because theyre in the same ets. First place finishers, triple crowns all. Whats incredible is that this is a long race, people its longer even than the Belmont Stakes so long its a multiquarter affair there can only be one winner that pays big, but there are place and show stocks that are going to give you a good return. Remember, i say the stocks predict six months out in the future this is a gigantic number of furloughs. Get to the far turn let alone the homestretch. Sure, you can make a field bet on every horse, thats called the s p 500. You want to capture returns from good and bad horses. All groups traded up today im talking about a winner take all race the s p simply wont make as much money as picking the win, place and show of this group picking winners is hard. There are horses that are in the lead right now, but they could finish dead last when this race is over. Right after that, first, who is in the lead . At the moment, believe it or not, industrials in first. Bank second, retail third. Technology coming in hard fifth. Helped by premidday announcement by micron. Toll brothers. That makes sense because this track belongs to all the companies that thrive in a low Interest Rate environment where the future looks better than the past because were opening america. We heard from industrials things arent as dire just a few weeks ago, as for the banks jpmorgans jamie diamond came out yesterday, it was an amazing speech he said we could be in for a quick recovery, something that would have seemed borderline impossible if not loony tune when you hear about beaches are packed it makes sense these stocks would catch fire. Doug parker from American Airlines said the worst is over. Same this afternoon. No wonder we learned boeing is starting up the max lines. The cruise lines, unsinkable numbers, numbers that wouldnt exist if the fed hadnt backed with credit. This is complicated. Most of the companies have been shutdown since march when covid19 turned into as genuine pandemic macys, nordstrom, kohls shined again today. Why not . Theyre allowed to be open tech, it isnt going anywhere until micron announced midday. Investment oriented tech stocks. We will speak to the c. E. O. In a few moments about why that number was so strong finally, housing is soaring because Interest Rates are low and people who live in cities are eager to flee to the suburbs in response to the virus this is actually got a name. Its called the counter urban trade. Housing is moving away from the pack with these numbers. Again, Toll Brothers after the close. What makes this race so hard to figure out is the stayathome stocks are very much in the pack, these incredible numbers from dominos, papa johns, recessionproof hanging in there, health care, heres curious. After all the vaccine hubbub, this is a bad group. Finally fang is biding its time. Maybe its become a bitter disappointment something wrong . Everyone seems to want to know i know how it looks. For the most part the lead horses are recovery plays. Theyre fueled by a great start. You have to abandon safety, go all in maybe we have a vaccine sooner than expected. Fauci is talking about november, december maybe we can reopen safely as long as people wear a mask a lot of people are betting we can go back to normal sooner than expected. The laggards are losing because who needs steady eddy stocks when the economy is blasting off . Papa johns dismissed the last good numbers funny thing, though. Im betting the field will be spread out by the time we get to the homestretch. Many of the current winners will fall behind. Why . Because right now the bulls are focused on the wrong problem i think theyre confused its one thing to believe were going to conquer covid and that will allow the economy come roaring back if you open up the economy and things are better but plagued by horrific levels of unemployment thats what you have to focus on its not enough to wheat the virus, people. Economy gets so strong that we beat sky high unemployment neither of these things is a sure thing the triple v horses, thats what im calling them, triple v, thats the vshaped recovery the vaccine vetted, v for victory. Might not even show let alone place if unemployment stays in double digits. Thats why im betting on the stayathome tech stocks even though well be able to go back to work at the office, it will never be the same now that the companies see how much money they can save with remote work fang thrives in a slow economy a slow economy is more than a rapid recovery this market is ignoring what happens when the bountiful unemployment checks over the summer bottom line, listen. I wouldnt believe an amazing rebound the recovery stocks will lead us all the way to the finish line. It would make a great cinderella story, but there is only one secretariat, people and i think thats fang. Even though the maiden caps, it could be a photo finish. Its on the homestretch. Vince in new jersey, vince caller hey, jim. How are you doing . Thanks for taking my call and making me money. Lets go to work. Caller jim, i recently picked up some planet fitness. Do you see some up side to the stock and could i add to it . I was a skeptic, okay and then we had chris rondo on, the c. E. O. And i became a believer. And i think youre going to make money with that. Lets go to ryan in texas. Ryan caller booyah, jim, hows it going . Pretty good day how about you, ryan . When the averages are up people are happy. How can i help caller so, today costco came out with an auto he will Program Incentive for chevy, allowing a purchase or lease of 2019 vehicles costco reports tomorrow after close. Is now a good time to buy or im going to tell you, my Charitable Trust owns costco i think the world of these guys. Went out to see them this is the quarter they instituted remember, they are a maskonly place now. There are people who hate that i think its great, but people hate it. I think the quarter may not be what you think lets wait until thursday. Lets go to brian in North Carolina brian caller hey, jim its brian from huntersville, North Carolina how are you doing . Doing good. How are you . Caller doing good. Jim, a huge fan. I want to thank you. Youve done so much for so many. Weve been watching for years. I appreciate that, thank you very much. Caller heres my question. So, the sector recently hit a 52week low, a huge bounce in the last two weeks youre a fan of the new c. E. O. Charlie sharp. Is it time to buywells fargo charlie would tell me because hes a tough guy, jim, the time to buy was last week when the stock was at in. Thats charlie with that dry sense of humor i would say that you have to wait for it to pull back because it just went up four straight points id rather bet with charlie than against him. Its daunting because put bank stocks are so bad, but charlie sharp is that good i want to believe well have a terrific rebournd and recover stocks will soar i dont care fang will own the homestretch on mad money tonight. At t reported after the close. Is it bringing profits i have the c. E. O then im pointing out two stocks that are not as they seem. Ill reveal the names and what it means for your money. And im talking to the c. E. O. Of workday after earnings that look fabulous so stay with cramer. Announcer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc miss something heado dmeynbco tmaon. Cc. M. I am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Snhu lets you transfer up to 90 credits [announcer] if youve tried college but never finished, toward your bachelors degree. [woman] it doesnt matter how old you are, you can do it. You can finish. [announcer] finish your degree at snhu. Edu. Now that wall street is going allin on the prospect of a rapid vshape recovery, what does it mean for beaten down tech hardware use . Hp, we spent a lot of time talking about tech winners in the stayathome economy its hard to imagine hp thriving when an office is going out of style a sizeable revenue miss, down 11 year over year they put up a solid set beat off of 44 basis their cash flow came in well below expectations management guidance, im calling it light still i think we need a clear picture. Lets drill down with the president and c. E. O. Of hp, inc. , to get a better read on the quarter and what he sees Going Forward. Welcome back to mad money. Hi, jim how are you . Oh, im good, enrique good to see you. Very good to see you. Thank you i want to understand this quarter. This one was a little hard for me okay. The earnings beat sensational, but some of the lines, including say Free Cash Flow and how youre doing in printers seemed suboptimal to me with this work at home, i would have thought everyone would have to recreate their office work. Maybe you can walk me through the quarter and what im missing. Sure. First of all, as you said, i am extremely proud of what we posted we beat earnings by 6 cents which we believe is a very solid result and especially for how the whole company responded to the situation. And by the fact, as you were saying, we have now an opportunity of making this brand even more essential than before. If i talk about the specific result, we saw very strong results, very Strong Demand on pcs, but we also saw a disruption in supply chain that impacted both pcs and also print. But we talked in our earnings in february, china opened a few weeks later after Chinese New Year and this had an impact both in printers and in pcs. So we saw demand for home printers, but we couldnt ship because we had supply chain issues oh, i know your inventory went up substantially. For this quarter, are you now set, in better shape than you were when you were kind of caught by china and covid . Actually, the team has done a fantastic job getting the factories back to work at the beginning of may we were almost at full capacity. And i say almost because given the current environment, there could be always a process from us or some of our suppliers. But we have really addressed the supply chain problems and we have now we will be addressing them in q3. Okay. Now, when our show introduced the concept i like for business subscription, inc. , you said that was strong in your relation is there a way to quantify that so i know whether that is going to be something to look forward to since inc used to be a good part of the business this was one of the key specific trends we saw in this situation. We saw a very significant increase of the demand for subscriptions. Do you remember when we were talking in february, i was sharing we had 6 million subscribers . Yes we surpassed 7 million subscribers late in april, which is 1 million additional in less than a quarter and even more important, we have seen 30 growth year on year on subscribers. And as you know, this is very important for us because this is how we want to drive the business Going Forward so its a significant support for the study we have put in place. Your strategic and Financial Plan for Value Creation in response to the xerox bid, we did talk about doing a lot more buy backs. But i guess because of covid you have to be more conservative on that in terms of how much stock youll buy back . So, first of all, we still think that buying back stocks is good because we think its under valued what we have shared today is that we are going to stay committed to the principles that we share in the value plan we think we have an opportunity of raising that. We also will be giving back to shareholders 100 of Free Cash Flow and as the situation will get more table, we will become more aggressive in buying shares back, and returning capital to shareholders okay, good. Now, the strength in notebooks was notable. The dragonfly, is that the concept you have that is a lighter, faster notebook that i know is quicker than anybody elses actually the demand for notebooks has been driven across the full portfolio dragonfly has been helping because its a fantastic product. But we have innovation from chrome books to elite books to the top of the pcs we have seen Strong Demand across the board we have also seen Strong Demand in education, kids learning from home this gives us even more confidence about the future than what we had last time we talked in february. One of the great debates we have right now on wall street is whether people are going to continue to stay at home and work at home now, a lot of their new work offices are hp is it your view that after all the money thats been sunk into doing that, that were not just going to give up those home offices and that a lot of people are going to stay home Going Forward . We think that for some particular jobs, people will still continue working from home and this will be happening in many different industries. And actually we see this as an opportunity. An opportunity for personal assistant pc accessories, but also an opportunity for print because we have a strong position in Office Printing and in home printing and we have the ability of connecting both for our customers. A okay. Now 3d printing is something ive been ever since it was rolled out in 2016, ive been fascinated by it it looks like you had the 3d printers going overtime for ppe. I think you should talk about that its a great thing you did from what i can tell, the biggest donator. We actually probably are, and we are extremely proud of what we did with 3d printing this quarter. It was a key milestone for the category we proved the flexibility that this technology has, how important it is to be able to produce locally, and so you know, we produced more than 2 billion parts. When i say parts, let me do justice to it. We produced face shields, respirators, ventilators that went to hospitals to help doctors work in this very difficult situation. All right and then last question, from your experience, if your stock stays here, do you think youre going to have to hear from xerox again . Do you think they realize its not the right time and not the right bet, so to speak i think, jim, it doesnt make sense for me to speculate on what others will do. Let me tell you what we are doing. We are very focused on execution in executing our strategy we are now more confident than ever in our ability to create value for shareholders we think this brand is an essential brand for people this will help us to continue to create value in the future all right, great, enrique im glad youre safe and sound thank you so much for coming on mad money. Great to see you, sir. Thank you okay, thats enrique, the president and c. E. O. Of hp, inc. Mad money is back after the break. Whenever stocks make extreme moves, Money Managers love to play games called mean version something they learn on trading desks. Extreme moves tend to roll back. An average stocks are drawn to really its a fancy way of saying that a big rally or big decline has gone overboard things are good but not this good things are bad but not this bad. Thats a useful flavor for this market let me give you some examples starting with one many investors got too good, take 2 interactive. I followed this Video Game Company for ages and ive been recommending the stock since it traded at 15 years and years ago. Its at 134 now take 2 knows how to make hit games. Red dead redemption. It must have been a typo even though knowing millions of people were being forced to stay home, they had nothing to do but play video games, stalz were stunning the stock spikes to 150, then on the Conference Call management makes what i thought was an obvious point. This kind of strength probably isnt sustainable. People go back to work, in response, stock makes a sickening pirouette lower. Suddenly the socalled smart money is out of take 2 leaving reit maining shareholders frightened what the heck is wrong with this company . The truth is theres nothing wrong. Take 2 had a spectacular quarter and pointed out the grand reopening of the economy, people may not play as much bounced 4 points today a run on the up side on the other hand lets talk about the mean reversion equation of southwest air. Symbol ouv southwest is easily the bestrun airline out there. The past few months that meant they were the best house in a real bad neighborhood. Who cares if the company is well run when the planes are grounded southwest was so bad they had to sell 78 million shares they had to take federal government money, the horror unlike many other groups, the airlines didnt bottom in march, they kept getting hit. Southwest traded all the way down to 22 earlier this month. Off more than 60 where it peaked in february thats where it stopped. Warren buffett had a 10 position then the economy starts reopening and a few more people booked flights still not great, but better than nobody flying. The terrific c. E. O. Gary kelly told us on squawk on the street it doesnt matter if youre allowed to fly if there is nowhere to go hold it, theme parks open, travel bans lifted, beaches wide open next thing you know southwest stock catches fire, up 12 yesterday. Its down dramatically from the highs. It could have more up side if it keeps getting good news from the economy. You are now up nicely. Yeah, its bad, but not that bad. Stocks like this or the retailers like the macys of the world, the kohls, the restaurants, the cruise ships, carnival, royal, norwegian which i like, they keep running until they reach the other end of the spectrum people realize, yeah, its good, but not that good. Dan in maryland. Dan. Caller jim, ive been staking out bomn is that onion going to make me weep tears of joy . I like bloomin. There are mom and pop shops that wont make it in this new environment. Youre still going to have social distance. Bloomin will make it im saying buy, buy, buy lets go to jeff in new york caller hi, jim, this is jim in western new york by the great good to have you. Whats up . Caller my son william wants to know about a company he thinks is doing well it was downgraded by citi before earnings and upgraded after earnings the stock is up 10 after reporting. Heres my son. Caller hi, mr. Cramer. Im 12 years old i hear monster is doing well youll need a drink to get through the hot summer days. What do you think of monster the kid has horse sense a lot of monster is sold at Convenience Stores people are driving again, theyre going to be buying them at those kinds of stores i think you are dead right i like your call i like mnst. All right. Sometimes things just arent how they seem. Case in point, southwest and take two theres much more mad money ahead including my exclusive with workday fresh off that strong report. Then im taking the pulse of the Airline Industry with air lease and all your calls rapid fire in tonight bes edition of the lightning round. So stay with cramer. What do we do with these Cloudbased Software stocks now that the economy is reopening . Workday, a Software Service company that helps with back office jobs, especially Human Resources and finance. And the numbers, we have to dig deep here. Workday delivered a slight revenue beat coupled with a revenue miss in a topsyturvy where theyre missing a mile, especially whispering there could be a big whiff here just the opposite. Much better than fear. Lets take a closer look with the straight shooting cofounder and c. E. O. Of workday to hear more about the quarter and his companys prospects. Welcome back to mad money. Jim, great to hear your voice. Its been a long time. Its been too long. There are times when everything seems to go kurfluey in the world and i expect a lot of numbers to be down you hit everything not only that, but i think you also got a couple of deals, one with microsoft and one with salesforce that will just accelerate your both earnings and revenue. How were you able to do these kinds of numbers in this environment . Well, first of all, i just want to say our hearts go out to all the folks affected by covid19 its been a really challenging environment. Im very proud of our team you know, we executed really well in this environment workdays products are Mission Critical to businesses, essential businesses, all kinds of businesses. Theyre dependent on us foreclosing their books, for paying their people, for tracking their employees people are doing a lot of Work Force Planning to adjust for the environment, and our team really, really stepped up in this last quarter. Now, i know im sorry. Go ahead. I was going to say on the two announcements, salesforce announcement is really critical. We want be to work with them mark and i are Close Friends bringing our Companies Closer together to make it easier for people to have one view into how theyre going to bring people back to work, into the office. But also i remember you telling me watch this tom bogan. Hes really smart. Hes going to stay after you bought adaptive. I look at workday. Those who know the product, no more toggle back and forth its one page, right it s one page. Tom was really the architect of our partnership with microsoft where microsoft becoming an adaptive planning customer and were going to move adaptive onto the azure cloud thats also a really Great Partnership we get to announce today. When i saw you on the street in San Francisco last, which seems like years ago because it was a beautiful sunny day. Aneel really has that Human Capital thing down but the financial part that hes been trying to do is stalling out. You cant do those numbers if thats the case. They must both be accelerated. We had a very Strong Quarter for financials you know, everything is given the current environment, which is a challenging environment, but we signed up a fortune 50 company, fannie mae, a financials customer. We had many great wins on the planning side. Our procurement applications did really well, which really is a part of finance in many cases. Our new friends at scout landed lowes and albert sons really exciting wins for them for companies that are not in the cloud, i think theyre struggling to run their systems. Either whether its having or lack of agility in the legacy systems. So when the world does get back to normal, i think the cloud companies, salesforce, are going to continue to thrive and probably see an acceleration in a move to the cloud. I know you do a lot of work with universities. I know that they are really struggling so, a struggling university is more likely to order workday in order to save money, or less likely to order workday because theyre in disarray . I would say specifically for higher ed, i think you take it university by university some of the smaller universities probably not able to take on a bigger project some of the larger universities, wellfunded universities, theyre still active in the market place when i took when i look at what youre doing in terms of the actual number money you take in, you started out, and i think its important i dont do enough of it, how horrible covid has been for families for things but i also know and you can never put a dollar amount on these things but i want to point out you had 79 million in additional expenses for covid which these analysts dont seem to understand do actually hurt your bottom line. Just for that quarter you know, i think we were fortunate to get out early in front of covid we shut our offices down early we had insight into what was happening in china and korea and other locations, italy we shut our office down and we thought about our employees. And very early on we decided to give them a twoweek bonus basically because everybody is struggling in this environment it might be a significant other has lost a job or parents are struggling or child care, so we just wanted to get ahead of that it was a onetime bonus payment we did in q1 to get ahead, make sure our employees were well taken care of. Last question, ive been working with mark to learn all about his return to safety, return the return back, the reopening. Are you part of that because the initiative is extraordinary for companies that are really trying to figure out how to get back in the world thats a big part of the partnership between work. Com and workday is to make sure the systems are there. And a collection of c. E. O. S are talking about this topic regularly to make sure we do it in a safe way, make sure that there are real set of standards on how to go back. When youre doing business with other companies, how do you make sure the companies adhere to the same hygiene standards and sanitation standards theres a lot to think through mark has been at the forefront of that. Hes fantastic we talk fairly regularly talk more to mark in the last couple weeks than the last couple quarters. Really enjoyed that friendship its great to talk about things to do once we get back into the office an incredibly difficult environment in the quarter and best of luck to you, sir thank you, jim. Good to hear your voice. Absolutely sane c. E. O. Of workday, company i like a very long time, wday. Headlines, they deliver or not deliver. Im telling you in this environment this is an amazing quarter. Stick with cramer. [narrator] at Southern New Hampshire university, were committed to making college more accessible by making it more affordable, thats why were keeping our tuition the same through the year 2021. I knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look, we can do this. [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Announcer lightning round is sponsored by Td Ameritrade take control of your future with madmoney. Cnbc. Com episodes, analysis, even your own sound board. Hallelujah. Plus special access to mad money 101, rules, techniques to break it down for all investors. Drop a stock immediately. Its everything you need right when you need it the new madmoney. Cnbc. Com. It is time its time for the lightning round. Rapid fire calls buy, buy, buy sell, sell, sell. [ buzzer ] and then the lightning round is over. Are you ready, ski daddy lets start with j. C. In virginia j. C. Caller hey, jim, hows it going . Good. Whats up . Caller my question, given the current climate in china and the u. S. , the new bill that passed the senate around last week or so, should i trust baba and their word theyre ready to deal with whatever it is baba the whole way. They have American Financial thats why i never liked most of the other stocks thats the one to stick with denise in minnesota. Denise caller hey, jim, thanks to you and your staff for staying on the job and guiding us through this crisis. They are good theyre good whats going on . Caller so, with an updated product line and packed campgrounds and the covid crisis, what do you think of winnebego . Just heard them on air. I think this is a terrific story. Glamping is back by the way, camping world, cwa, is really good okay, lets go polaris, ryan had them on this morning. They sounded good. Lets go to greg in virginia greg caller philadelphia eagles, jimmy chill. Whats going on caller i want your opinion on waste management. Its come down enough, its paid its dues. Buy, buy, buy im not worried about the recycling trade. Lets go to rene in texas. Rene caller how are you doing, jimmy . Im doing good, how are you caller doing good, sir just wanted to know your thoughts on carvana. People tell me theres no way they can make money. Sure enough, i thought when they were on air they acquitted themselves very well i have to go with the trend here people tell me, jim, youre not being enough, its good. Tom in florida, tom. Caller booyah, jim booyah. Caller my stock is the chinese online k12 tutoring provider in china. The New York Stock Exchange symbol is gsx. No, chgg. I think you should sell that and be in ching. I dont trust that company one bit. Lets go to jared in washington jared. Caller love your show, man, watch you every day. Thank you whats going on . Caller so, jim, with earnings coming up and so Many Companies realizing the benefits of work from home, what are your thoughts on slack . Everyone keeps thinking that microsoft is going to wipe out slack. I think that slack i like slack all the way down i take a lot of heat for liking it when it got below 20. I like it now. I think its still a buy buy, buy, buy good company. How about chris in florida chris. Caller jimster yo. Caller i have citi at 42, now its up to 52. Should i hold on or tap out . Which one caller citi. Heres the thing about citi its expensive, but its a buyback stock remember, its bad for buy back stock. Thats what made it so special for me lets go to joe in pennsylvania joe. Caller jimmy chill yo. Caller i wanted to ask you about data center demand, more specifically switch went over a 52week high this week thats a hot stock. Its a hot stock it has many things going for it. I want you to hold onto it lets go to judith in maryland judith caller hi, jim judith. Caller how are you im good, how are you caller im good. Im thinking of my granddaughters 5 and 7, im starting to invest for them. Id like they have to buy a house when they grow up. What do you think of zynga its making a comeback. Maybe buy zynga. They actually have games theyre getting it together and the gaming industry is very strong despite the fact that people feel once this stayathome is over, it wont do well. I think youre okay. Person [ buzzer ] lets go to tim in florida tim. Caller whats happening, jim . Not much. Caller a company good, glad stone commercial they are offering 10 dividend dont trust it. Dont trust it no we dont buy there are a bunch of stocks in the same business we have no idea what they really own. I dont want you to own that stock. Lets go to karen in new york karen. Caller hi, jim, thanks for taking my call of course caller im calling to find out what you think about coty. Why own a second rate company when you can have Procter Gamble down big from its highs having a good quarter. And that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] announcer the lightning round is sponsored by Td Ameritrade another day, another rally in the recovery stocks i keep telling you this market is trying to look past the current recession. With wall street currently betting on a vshape recovery where everything gets back to normal air travel is likely to stay depressed a long time. Might take years to recover to precovid levels. C. E. O. Worried about potential bankruptcy among the Major Airlines yet the Airline Stocks spent the last couple of days soaring. We need to take the pulse of this industry, the best way to do that is with air lease, one of the largest Aircraft Leasing companies on earth they own 400 planes and lease them to the airlines in february and march falling from the mid 40s to 8 bucks at the lows 30 today, the recent quarter was somewhat disappointing where is it going . Lets check in with the founder and executive chairman of air lease who is a legend in the industry get a better read on whats happening. Welcome back to mad money. Hey, jim, its great to be back all right, steve. Late breaking news here. We just found out that boeing is restarting the 737max building in renton, washington. Would they do that if they didnt think there was maybe good news coming from the faa or the airlines yeah, theyre working very closely with the faa, the airlines and the regulators. They restarted production today. I was in seattle yesterday with boeing management. Theyre making progress on certification activities, working very closely with the regulators and our hope is by the end of the Third Quarter or early part of the fourth quarter, the airplane will get certified in the u. S. And then hopefully shortly thereafter in the foreign jurisdictions. And the goal is to get some airplanes delivered before the end of the year. I think one of the reasons its a good day on wall street, people got a little too negative i was reading your financials the other day and its pretty clear that its not like every airline is going bankrupt or going out of business. Thats true i mean, jim, in the last 20 years, the Airline Business has become the mode of local Mass Transportation just to give you an example, last year 4. 5 billion Airline Passengers flew on the Global Airlines thats a big percentage of the population of the earth. Not only in terms of passenger traffic, but cargo and small packages and logistics its really a very important part of the global economy, the Global Network of commerce and it does seem a lot of people must be theyre deadbeat airlines i was shocked at how well you handle even some say a little forbearance. You make it clear, no, you have to pay and almost every does, correct thats true these are very shortterm help that we gave primarily march, april, some into may, and a quick pay back obviously the Summer Season coming with greater scheduling, more frequency of flights, airlines will begin to generate a much higher volume of revenues we believe the recovery will be a little quicker than some of these socalled experts have pronounced there is a socalled expert, the guy is a c. E. O. Of boeing. I was getting pretty bullish about things then i saw him on the today show and he made they think, my prediction all the airlines would make it was wrong and one of them was going to go under. Does he have a book of business thats as large as yours or maybe hes a neophyte . He had a bad day, he had aircraft cancellations, orders from a few airlines, a couple of leasing companies, you now, moved back some of their order positions. Dave must have had a bad day and he was a little bit pessimistic. But i was up in seattle yesterday with boeing management, and the mood is much more positive today than it was a week or two ago. Oh, thats good they should take some stabilizeers there if there is that kind of issue before going on tv. In good Times Airlines need our aircraft, in bad times they need our balance sheet. Tell me if im wrong youre a 50 billion aircraft. How many people work at your company . 116 how is that possible . Well, were very efficient. We have wonderful longterm multidecade relationships with the airlines, with wall street and once the aircraft are leased, then the Airline Takes delivery its a triple transaction. They take care of the maintenance, the insurance, the operations we sit back and collect the money every month. Periodically people try to go up against you there is always some guy who tries to crack it, and always somebody who goes under. You have an amazing relationship both with the manufacturers and with the airlines. Well, in my career, i bought more than 3,000 commercial jets from air bus and boeing and douglas and lockheed, all these companies. Some are not even around today so we have a tremendous amount of experience. Our team is seasoned most of our executives have been doing this 20 years. We built solid longterm relationships with the manufacturers, with the supply chain, with wall street. I think that makes a difference. In tough times, the airlines congregate to a reliable partner like air lease i find the other this is not like a car buy versus a car lease. I dont really understand, why would anyone buy a plane if they could lease it well, particularly now with airlines balance sheets, its easier to release an airplane. A 50 million airplane, normally if an airline buys it, they have to put up as much as payments before taking delivery we take cash deposits, the first months advance, and its a much easier way for an airline to get a modern brandnew airplane. Last thing i wanted to touch on your optimism youre a hard nose business person your optimism isnt based on, hey, i think the world is going to get better. You must be looking at specific things that the order books need to be fulfilled. The planes need to be bought because traffic is coming back well, absolutely. Traffic is coming back and we expect the recovery to be regionally distributed we see asia is recovering fairly quickly. So things are going in the right direction. You know, im glad i spoke with you the executives sometimes i get the executives who are too downbeat it is a pleasure to have you back you know more than everybody phil lebeau with me be sure that i knew that, but i kind of knew air lease and you are legendary. I want to thank you. The executive chairman of air lease. Thank you, sir great to see you thanks, jim take care. Good luck to you thank you, you, too mad money is back after the break. Tonight on markets in turmoil, what the nations recruiters are telling us about when hiring might pick up. Plus the commissioner and his plan to get his lead back on the ice, and the challenges facing local Business Owners and how theyre dealing with the uncertainty. All that is coming up next with scott wapner okay, workday may be the most important quarter that weve seen other than Toll Brothers in the after hours. Toll brothers will move all the housing stocks, but i think the cloud kings could have a very good day do not forget, salesforce reports tomorrow so it could be a nice bridge i think the cloud kings are back and just because they had a couple days off doesnt mean theyre finished, okay workday, excellent quarter i like to say theres always a bull market somewhere and i promise to find it for you here on mad money. Im jim cramer and i will see you tomorrow markets in tull mi turmoil. Good evening, im scott wapner, day 150 of the Coronavirus Crisis the death toll tops 100,000. But tonight there is optimism for the future of jobs in america. Announcer tonight, new signs of a comeback. Its another step in the return to some degree of normalcy. Announcer from the world of sports to the Great American job market, plus disney makes its pitch. Its ready to open the magic kingdom. Well slowly but surely make